The tea extracts market is projected to grow at a CAGR of 6.9% from 2019 to 2025.
The global tea extracts market is estimated to be valued at USD 2.5 billion in 2019 and is projected to reach USD 3.8 billion by 2025, recording a CAGR of 6.9%. The increase in consumption of convenience food, rise in health consciousness among consumers, and multi-functionalities of tea extracts are some of the major factors that have led to an increase in the application of tea extracts and surge in demand for tea extract supplements. These factors are projected to drive the growth of the global tea extracts market.
The conventional segment, by category, is estimated to be the largest segment in tea extracts market during the forecast period.
Tea extracts are manufactured either organically or through conventional methods. Natural fertilizers and compost are used to produce tea extracts organically, while extensive chemical treatment using chemical fertilizers are adopted for conventional tea extracts. Conventional tea extracts are produced commercially, unlike organic extracts, which are produced by small-scale producers; hence, organically produced tea extracts are priced at a premium rate, which affects their demand. Organic, being a recent trend, is still at its nascent stage, and hence, the conventional category segment dominated the global market.
The beverages segment, by application, is projected to witness the fastest growth in the market during the forecast period.
The trend toward healthy eating has increased the demand for convenient and healthy options for food & beverages among consumers. Manufacturers have been incorporating innovative flavors in their ready-to-drink beverage products, such as peach, lemon, honey, pomegranate, mint, and several herbal flavors, to cater to consumer demand. The growing demand for RTD tea in the global beverage segment has been creating opportunities for the market in the beverage industry.
North America is estimated to account for the largest market share due to the high demand for tea extracts from the US.
The increase in obesity cases and heart attacks has led consumers to switch to antioxidants and anti-inflammatory food and beverage products. Botanical extracts are being increasingly used among US consumers in their daily diets, with a view to derive multiple health benefits and lead healthy lifestyle. Since a majority of the US population consume tea, this flavor is being used by the US food & beverage industry for their innovative products in the form of extracts. The rise in popularity of functional foods and switch from the traditional source of nutrients are major propellants of the tea extracts market in the region.
- By Designation: Tier 1 – 45%, Tier 2 – 33%, and Tier 3 – 22%
- By Value Chain: Manufacturers – 20%, End-users – 80%
- By Region: North America – 50%, Asia Pacific – 10%, Europe – 30%, RoW* – 10%
*RoW includes countries in South America, the Middle East, and Africa.
Leading players profiled in this report
- Archer Daniels Midland (US)
- Dupont (US)
- Kemin Industries (US)
- Givaudan (Switzerland)
- Synthite Industries Ltd. (India)
- Synergy Flavors (US)
- Frutarom (US)
- Finlays (UK)
- A.Holliday & Co. (Canada)
- •Martin Bauer Group (Germany)
- Indena SPA (Italy),
- Futureceuticals (US)
- Amax Nutrasource Inc. (US)
- Cymbio Pharma Pvt. Ltd. (India)
- Teawolf (US)
- Phyto Life Sciences Pvt Ltd. (India)
- Taiyo International (Japan)
- AVT Tea Sources Ltd. (India)
- Halssen & Lyon GMBH (Germany)
- Harrisons Tea (India)
- HVMN Inc (US)
This report segments the tea extracts market, on the basis of application, category, type, form, and region. In terms of insights, this research report focuses on various levels of analyses competitive landscape, end-user analysis, and company profiles which together comprise and discuss the basic views on the emerging & high-growth segments of the tea extracts market, the high-growth regions, countries, government initiatives, market disruptions, drivers, restraints, opportunities, and challenges.
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